S&P 500 e-mini futures rose 0.3% and Nasdaq futures climbed 0.7% early Wednesday, lifted by CoreWeave's earnings beat, as traders positioned for the July U.S. CPI report. Stalled Iran war talks kept oil near its highest closes since July 31, while gold and silver also rose.
S&P 500 e-minis rose 0.3%, while Nasdaq futures climbed 0.7%, as upbeat results from AI cloud company CoreWeave after Tuesday's close gave the AI trade another lift.
Traders position for July CPI
Traders are now focused on U.S. consumer price data due later Wednesday for signals on the timing of any Federal Reserve move. Economists polled by Reuters expect consumer prices to rise 0.1% in July after falling 0.4% in June, with annual inflation forecast to slow to 3.4% from 3.5% a month earlier. Money markets currently price in a roughly 50% chance of a Fed rate hike next month.
Dorian Carrell, head of multi-asset income at Schroders, said the market's read on interest rates and monetary conditions seems to be driving the market at the moment.
Iran talks stall as oil holds near recent highs
Talks to end the Iran war and reopen the Strait of Hormuz to shipping hit an impasse, keeping oil near multi-day highs. Iran's most senior security official, Mohsen Rezaei, said the strait will stay closed unless the U.S. accepts Iran's conditions to end the war. U.S. crude dipped 0.3% to $82.94 a barrel and Brent fell 0.2% to $89.71, after both benchmarks settled at their highest closes since July 31.
Despite the deadlock, Carrell said Schroders' base case remains "a gradual but messy de-escalation."
Yen and gold move on BOJ bets
Markets increasingly price in an early Bank of Japan rate hike, with investors now pricing in an almost 60% chance of a quarter-point move at the BOJ's September meeting. The yield on Japan's 5-year government bond rose to a record 2.12%, while the 2-year yield hit a 31-year peak of 1.645%. The yen strengthened slightly to 159.12 per dollar, still off last week's high of 155.20.
Spot gold rose 1% to $4,413 an ounce, while spot silver jumped 2.5% to $66.29 an ounce.
Sources: Economy News, Reuters
Trading involves risk.
Risk Disclaimer
